Despite a report showing larger than expected year-on-year growth for France in the second quarter, the Euro was trading below 84 pence per Euro as the European session began.
While French quarterly growth matched forecasts for a rise of 0.5 per cent, year-on-year the nation’s economy expanded by 0.4 per cent rather than the 0.3 per cent initially recorded.
However, the Euro lost ground against Sterling as the British asset broadly strengthened after Bank of England Governor Mark Carney asserted that, at present, he sees no need for additional easing.
In a newspaper interview Carney was quoted as saying; ‘Given the recovery has strengthened and broadened, I don’t see a case for quantitative easing and I have not supported it.’
The common currency is likely to experience notable movement in the hours ahead as Eurozone confidence and German inflation figures are published.
Gauges of consumer, economic, industrial, services and business climate confidence are all expected to show improvement.
If the results meet or exceed estimates the Euro could be boosted and recoup recent losses against the Pound.
The Euro/Pound Sterling pairing is currently trading in the region of 0.8390
Meanwhile, economists have forecast that annualised German inflation held at a three-month low of 1.6 per cent this month.
Prices in the Eurozone’s largest economy are expected to be unchanged month-on-month.
Before the data was published Frankfurt-based economist Daniel Lenz stated; ‘Prices remain rather anchored. The overall environment of modest demand outside Germany helps to keep the consumer price index anchored. Only from 2014 do we expect German CPI to rise above 2 per cent.’
As the weekend approaches the EUR/USD pairing could fluctuate further in response to US Personal consumption data and the University of Michigan Confidence index.
Euro (EUR) Exchange Rates
As of 09:00
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3492 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8390 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4433 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6299 <
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.3920 >
